Housing Market North East

The North East housing market has experience rapid growth in the past 10 years. House prices are still lower than elsewhere in the country; however, the gap between the north east and average UK house prices is narrowing.

Areas such as Newcastle are witnessing significant regeneration, housing is often a key to this regenerations.

For example, Bridging Newcastle Gateshead is one of 9 projects to create new, better homes in the north east. BNG is supported by the government and has received funding of £65 million to subsidies a 15 year programme. The purpose is to create great places to live in an area covering around 77,000 properties in Newcastle Gateshead.

Low Demand Housing

Despite rising house prices, pockets of Newacastle and the North East are characterised by low demand housing.

Low demand housing is predominantly in areas deemed unsuitable, unsafe; therefore, despite low prices demand for these houses remains low.


Areas of low demand housing are characterised by higher crime rates and high unemployment levels. They are often associated with the high rise tower block, built in the 1960s.

Therefore, the challenge for housing in the north east is not just to build new houses but replace the majority of the low demand housing. It is hoped that through schemes such as BNG residents can be incorporated into the planning process; it is hoped this will create more desirable areas to live, without the problems of the past.

Are House Prices set to Fall in the North East and Newcastle?

The rise in house prices in the North East, is mainly based on demand outstripping supply. The forecast for future house prices in this area are fairly similar to the rest of the country.

• Will House Prices fall in UK?